CA AB1131

Establishes the Hospitals First Revolving Fund administered by the Department of Health Care Access and Information to provide grants and low-cost loans to publicly owned hospitals in rural and medically underserved communities.

Authorizes the fund to provide loans at or below market interest rates with repayment beginning within one year of project completion and full amortization within 30 years, requiring recipients to establish a dedicated revenue source for repayment.

Allows the fund to provide grants to eligible publicly owned hospitals and to earn interest, with loan repayments and interest deposited back into the fund rather than the General Fund.

Defines eligible activities as those that prevent hospital closures or facilitate reopening of closed hospitals in rural and medically underserved communities.

Requires the department to adopt regulations, conduct studies as needed, and ensure public participation opportunities for hospitals seeking assistance.